The Government’s Plan B
It is reported today that the Coalition Government has prepared an alternative economic strategy to be activated if the economy does not recover fast enough. Elements of the Plan B are further quantitative easing, purchase of commercial bonds, infrastructure investment and tax cuts.
It would not surprise me if a Plan B proves necessary, but a reduction in the scale and speed of public expenditure cuts should be part of any alternative strategy about which I speculated in a posting two months ago.